Arohan’s investing life

Buffet is buying 60% stake in the Marmon group, currently a Pritzker family holding, with the remaining 40% to be acquired over the next few years at future business valuations. Also a point to note is the before this acquisition is completed, the Marmon group will make significant cash distributions to the selling shareholders. The 60% stake was valued at 4.5 Billion

Buffet is doing what Buffet does best. Buying business that deals in the nuts and bolts of the global economy. Easy to understand (despite Marmon being made up of about 125 different operating businesses), generating significant cashflows, with tremendous tangible assets.

Much has been said about the futility of operating as a conglomerate. Focus on the core competency has become a buzz word within the academia. However, there are companies that do this right, Berkshire Hathaway being one of them, Marmon being the other. It is not surprising to see the allure Buffet found in Marmon

Related posts:

1. Sterlite Industries - possibly branching out to banking
2. Leucadia takes another bite off Americredit
3. Sterlite Industries - banking deal is off
4. What price Google?
5. Countrywide sellout too cheap?